A Case for ILORs (In Lieu of Raises)

This is NOT about letting bosses off the hook when it comes to the bucks. Raises are great and we’d all like them as often as possible. But sometimes there are real budget constraints and even the best of bosses are stuck doling out a paltry 3% across the board – or some equally negligible number.

But that doesn’t mean the boss stops here – although all too often he does. “Sorry… no money.” “Not my fault.” “Would love to show you how much we appreciate your work, but my hands are tied.” Oh are they really?

There are many creative ways to show employees some love that have nothing to do with money. And again…money is really really good. Still…until that glorious day when funds flow more freely again and some real raises are possible, I suggest a system of ILORs (In Lieu of Raises.)

ILORs are an addition to any Perks the employee already has and can be handed out when a job is well done or after a good review or even if someone goes out of their way to do something nice for co-workers. The exact structure of the ILOR system is of course up to the company and can be tailored to match specific behaviors a boss wants to encourage. Some ILORS might even come from write-in nominations in acknowledgment of a good deed or task well done – or maybe even within categories like “Ms/Mr Congeniality” or “Solution Guru” or “Got My Back” that people vote for a few times a year!

There’s no limit to the possibilities. An ILOR can be almost anything that would be viewed as a reward. I challenge bosses all over to start thinking of ILORs for your organization. And to get you started, here are a few that certainly would have made me happy:

• Late Start Cards – lets the employee come in 2 hours late on any day/week of their choice
• Early Out Card – lets the employee leave early on any day/week of their choice
• There is a Free Lunch Card – employee can invite any co-worker to lunch and the boss pays
• 1/2 Day Off Card – lets the employee come in 4 hours late or leave 4 hours early on any day of their choice
• Summer Fridays Off Card – lets the employee take off a specified number of Fridays in the Summer (can also be 1/2 days on Fridays, allowing the employee to leave after 4 hours)
• Extra Day Off Card – simple but effective
• Chance to Schmooze Card – gives the employee a chance to sit with the boss and just discuss his or her ideas – without the boss guiding the agenda
• Two-Hour Lunch Card – I guess that’s pretty clear
• Mini-Bonus Card – entitles employee to a small cash bonus that any company can afford (like $200)
• Gift Certificate – entitles employee to a small amount of purchases at some store or restaurant (company can even be negotiate with the store/restaurant to get freebies or discount)
• Project Card – Entitles employee to work on the company project of their choice or maybe even to design one of their own
• Free Ride Card – gift certificate for the use of a limo for 2-4 hours
• Get Out of Jail Free Card – if the employee screws up, s/he just presents the card and knows they won’t be yelled at or made to feel bad in any way.
• Serendipity Walk Card – entitles the bearer to a 1 or 2-hour walk to clear his or her head and think about nothing or anything. It helps release tension and hopefully some creativity. (This is a marvelous idea I found on LizBiz.Wordpress.com. Personally I think these cards should be handed out often!)
• Ticket to shows, concerts, films, etc. – these don’t cost all that much and really make great ILORs

Basic rules: Cards must be turned in when used and time off can’t happen during any critical meetings, of course.

As I said, this list is only a small sample of possibilities. Employers can certainly come up with lots of cool stuff of their own – in whatever format works for them. (If cards are too sappy, there are other ways.) The important thing would be to hand these out for reasons that are clearly understood. And of course care should be taken to award these fairly and not only to boss favorites.

The main point is that even if an employer can’t give out hefty raises, there are still ways to reward employees. A boss doesn’t have to feel hamstrung by a limited budget.

And most importantly – the whole thing should be fun and kept positive. ILORs should never be used to punish anyone, such as “Everyone but Joe gets Friday afternoon off!” Jeez, that would be awful. But if people know these are available and can be earned through hard work and good attitude, then ILORS can help a company keep up morale even in times of tight budgets.

The best thing is, it doesn’t cost much. Most of the items with a price tag are $200 or less. And any calculations about how much a day off costs an employer in theory (and I have many doubts about the validity of such calculations) are far exceeded by productivity and morale gains.

So to all the bosses out there who are stuck giving minimal raises at best… give it a shot. Come up with your own ILORs and let me know how it goes!

And if you are an employee, feel free to suggest this to your boss if you think she might listen. I won’t feel bad at all if you take the credit. Oh…and if your boss hates the idea, well just point her here and put the blame on me! (Although I basically think blaming behavior is not a great idea, I give you a Blame Free Card good for this one time.)

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Although I had to stop answering individual questions (to preserve my sanity), as always your thoughts and stories are VERY welcome here.

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